How Investment Goals Vary by Country and Age

How Investment Goals Vary by Country and Age

However, it turns out that why investors want their money to grow changes considerably, depending on who you are talking to.

Investment Goals by Geography

Today’s infographic from Raconteur first shows why people invest based on country of residence.

In the following table, we’ll show selected data to illustrate an interesting contrast between North American, Asian, and European cultures:

Country

Primary Investing Goal

Percentage

Canada

Saving for retirement

78%

USA

Saving for retirement

71%

UK

Saving for retirement

71%

Hong Kong

Saving for retirement

48%

Germany

Saving for retirement

40%

France

Saving for retirement

27%

UAE

Saving to start a business

31%

China

Beneficiaries / estate planning

42%

In Canada, the United States, and the United Kingdom, saving for retirement is the primary investment goal for 70% or more of all respondents. However, in Europe and Asia, there is a much wider diversity of investment goals.

In Germany and France, for example, close to a quarter of respondents mentioned that saving for an emergency was their primary goal, behind saving for retirement. Meanwhile, in the UAE and in China, the primary investment goal was not retirement – it was instead saving to start a business (UAE) and setting up family and/or beneficiaries for success (China).

Goals by Generation

It’s not just geographical boundaries, the level of economic development, and the local culture that impacts investment goals.

Another factor is generational: Baby Boomers, Gen Xers, and Millennials are at very different stages of life, and each generation has their own quirky preferences, anyway.

Statement (I want to…)

Highest Agreeance

Lowest agreeance

Retire comfortably

Boomers

Millennials

Make sure money is safe

Boomers

Millennials

Preserve as much wealth as possible

Boomers

Millennials

Pass on wealth to my heirs and others

Millennials

Gen Xers

Ensure I have funds to pay for important events

Millennials

Boomers

Invest at the lowest cost possible

Boomers

Gen Xers

Have the best advice possible and am willing to pay

Millennials

Boomers

Retire early

Gen Xers

Boomers

Not miss out on market opportunities

Gen Xers

Boomers

Choose riskier investments to build wealth fast

Millennials

Boomers

Not surprisingly, as people get older, their goals shift away from making immediate big-ticket purchases, and holding riskier investments for a higher rate of return. Later on in life, goals are more focused on retirement and maximizing wealth.

That said, there are some anomalies in the above data that are interesting.

For example, Millennials – not Baby Boomers – are most concerned about building wealth to pass onto their heirs. Finally, it is the Millennials that are willing to pay the most for investment advice, in order to get the best possible result.

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Jeff is the Editor-in-Chief of Visual Capitalist, a media site that creates and curates visuals on business and investing. He has been quoted or featured on Business Insider, Forbes, CNBC, MarketWatch, The Huffington Post, The World Economic Forum, and Fast Company.